MINNEAPOLIS, Minn., June 24,
2022 /CNW/ - Ceres Global Ag Corp. (TSX: CRP)
("Ceres" or the "Corporation") today announced that
it is suspending its previously-announced canola crush project at
Northgate, Saskatchewan (the
"Project"). The Corporation's decision to pause the project is due
to a variety of factors, including but not limited to, inflationary
pressures resulting in higher costs than initially projected and
shifting macroeconomic conditions. Consistent with the foregoing,
Ceres has taken the step of terminating an equipment design and
supply contract relating to the Project, in order to reduce
project-related contract liabilities. Termination of this contract
and suspension of the Project will result in a fourth quarter
impairment charge in relation to certain earlier expenditures made
in connection with the Project and which will be included
when Ceres' reports its fourth quarter and fiscal year-end
results later this fall. The Corporation currently estimates that
the impairment will be in the range of $25
million to $30 million. Ceres
intends to continue to explore avenues to pursue a canola crush
project of some form in the future, but there is no guarantee that
such a project will come to fruition or would be similar to the
previously announced Project.
About Ceres Global Ag Corp.
Ceres and its subsidiaries add value across agricultural, energy
and industrial supply chains through efficient sourcing, storing,
transporting and marketing of high‐quality agricultural
commodities, value‐ added products and raw materials. Leveraging
its network of commodity logistics centers and team of industry
experts, Ceres connects farmers to customers around the world.
Ceres is headquartered in Minneapolis,
Minnesota, and together with its affiliated companies,
operates 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facilities have an aggregate
grain and oilseed storage capacity of approximately 31 million
bushels.
Ceres has a 50% interest in Savage Riverport, LLC (a joint
venture with Consolidated Grain and Barge Co.), a 50% interest in
Berthold Farmers Elevator, LLC (a joint venture with The Berthold
Farmers Elevator Company), a 50% interest in Farmers Grain,
LLC (a joint venture with Farmer's Cooperative Grain and Seed
Association), a 50% interest in Gateway Energy
Terminal (an unincorporated joint venture with Steel Reef
Infrastructure Corp.), a 25% interest in Stewart Southern Railway
Inc. (a short‐line railway located in southeast Saskatchewan with a range of 130 kilometers),
and a 17% interest in Canterra Seed Holdings Ltd. (a Canada‐based
seed development company).
For more information about Ceres, please visit
www.ceresglobalagcorp.com
Cautionary Notice: This news release contains
"forward‐looking information" within the meaning of applicable
Canadian securities legislation and United States
securities laws. Forward‐looking information may include, but is not
limited to, statements regarding future operations and results,
anticipated business prospects and financial performance of Ceres
and its subsidiaries, including the plans, costs, timing and
capital for the further development of the Northgate
Commodities Logistics Centre,
expectations or projections about the future,
strategies and goals for growth, expected and future cash
flows, costs, planned capital expenditures, the amount of expected
write-downs, regulatory change, general economic political and
market conditions anticipated capital projects, construction and
completion dates, operating and financial results, critical
accounting estimates, the expected financial and operational
consequences of future commitments. Generally,
forward‐looking information can be identified by the use of
forward‐looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends",
"anticipates" or "does not anticipate", "believes", "may have implications" or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur", or
"be achieved". Forward‐looking information is based on the opinions
and estimates of management at the date the information is made,
and is based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward‐looking information. Key assumptions upon which such
forward‐looking information is based are listed in the
"Forward‐Looking Information" section of the MD&A for the
period ended March 31, 2022. Many
such assumptions are based on factors and events that are not
within the control of Ceres and there is no assurance they will
prove to be correct. Factors that could cause actual results to
vary materially from results anticipated by such forward‐looking
information include, among others, risks related to weather,
politics and governments, changes in
environmental and other laws and regulations, competitive factors in agricultural, food processing and feed sectors,
construction and completion of capital projects, labour, equipment
and material costs, access to capital markets, interest and
currency exchange rates, technological developments, global and
local economic conditions, the ability of Ceres to successfully
implement strategic initiatives and whether such strategic
initiatives will yield the expected benefits, the operating
performance of the Corporation's assets, the availability and price
of commodities and regulatory environment, processes and decisions.
Although Ceres has attempted to identify important factors that
could cause actual
actions, events or results to differ materially from those described
in forward‐looking information,
there may be other factors that cause actions,
events or results
that are not anticipated, estimated or intended. There
can be no assurance that forward‐looking information will prove to
be accurate, as actual results and future events
could differ materially from those anticipated in such information. Ceres undertakes no obligation to update forward‐
looking information if circumstances or management's estimates or
opinions should change, except as required by
applicable securities laws.
The reader is cautioned not to place undue reliance
on forward‐looking information.
SOURCE Ceres Global Ag Corp.